Executive Summary

Q4 2024 revenue was $13.2M, above internal expectations, and GAAP diluted EPS was $0.05 at the high end of guidance; gross margin improved sequentially to 51.3% (from 49.2% in Q3) but remained below prior-year levels due to volume mix .
Product revenue rose sequentially to $11.0M (from $10.4M in Q3), aided by IBM FlashCore Module 4 shipments and RAD-Hard activity; licensing/royalty/other was $2.2M, roughly flat Q/Q but down Y/Y .
Q1 2025 guidance: revenue $12–$13M; GAAP basic EPS loss ($0.10)–($0.05); non-GAAP basic EPS ($0.05)–$0.00. Management expects a 2H 2025-weighted year as Asia customers burn inventory and seasonality normalizes .
Potential stock-reaction catalysts: sequential product growth and IBM/Lucid traction vs near-term headwind from lower “other income” recognition in Q1 and a guided GAAP loss; 2H-weighted recovery narrative tied to RAD-Hard and design-win conversion .

What Went Well and What Went Wrong

What Went Well

Revenue above company expectations and EPS at high end of guidance; “solid results... driven by strength in our product revenue and RAD-Hard projects” (management) .
Sequential improvements: product sales up to $11.0M (from $10.4M in Q3) and gross margin up to 51.3% (from 49.2% in Q3) on mix; cash increased to $42.1M, debt-free balance sheet .
Strategic traction: 178 design wins in 2024; validation with Lattice FPGAs; IBM FCM4 shipments; early Lucid Gravity revenue recognition; Purdue neuromorphic AI program initiation .

What Went Wrong

Year-over-year pressure: revenue ($13.2M vs $16.7M), gross margin (51.3% vs 58.1%), licensing/royalty/other ($2.2M vs $4.3M) all declined vs Q4’23 on lower volumes and project timing .
Q1 2025 guide implies GAAP loss; management also flagged materially lower “other income” recognition in Q1 (>$1M lower Q/Q), creating near-term EPS headwind before 2H ramps .
Continued macro/inventory digestion, especially in Asia, weighs on near-term demand; full-year 2024 revenue fell 21% Y/Y to $50.4M as distribution and product volumes softened .

Financial Results

Metric	Q4 2023	Q3 2024	Q4 2024
Revenue ($M)	$16.7	$12.1	$13.2
GAAP Diluted EPS ($)	$0.09	$0.10	$0.05
Gross Margin (%)	58.1%	49.2%	51.3%
GAAP Operating Expenses ($M)	$8.1	$8.1	$8.4
Other Income, net ($M)	$0.4	$4.40	$2.6
Adjusted EBITDA ($M)	$3.6	$4.2	$3.2
Cash & Equivalents (period-end, $M)	$36.9 (FY end)	$39.6 (Q3 end)	$42.1

Revenue breakdown (proxy for “segments”):

Revenue Component ($M)	Q4 2023	Q3 2024	Q4 2024
MRAM Product Sales	$12.4	$10.4	$11.0
Licensing/Royalty/Patent/Other	$4.3	$1.7	$2.2

Additional KPIs:

KPI	Q4 2023	Q3 2024	Q4 2024
Design Wins (FY total)	—	—	178 (FY 2024)
“Other income” from DoD sustainment award (subset)	—	—	$2.1M recognized in Q4 (part of $2.6M net other income)

Notes: The $2.6M Q4 other income includes $2.1M from the $14.6M DoD sustainment award plus other items; Q3 other income includes milestone-based awards that drove EPS outperformance in that quarter .

Guidance Changes

Metric	Period	Previous Guidance	Current/Outcome	Change
Revenue	Q4 2024	$12–$13M (as of 10/30/24)	Actual: $13.2M	Above prior guide
GAAP Diluted EPS	Q4 2024	$0.00–$0.05 (as of 10/30/24)	Actual: $0.05	At high end
Revenue	Q1 2025	—	$12–$13M	New
GAAP Basic EPS	Q1 2025	—	($0.10)–($0.05)	New
Non-GAAP Basic EPS	Q1 2025	—	($0.05)–$0.00	New
Non-GAAP Reporting Focus	2025 onward	Adj. EBITDA emphasis (historical)	Shifting to Non-GAAP EPS	Methodology updated

Earnings Call Themes & Trends

Topic	Previous Mentions (Q2’24 and Q3’24)	Current Period (Q4’24)	Trend
AI/Tech initiatives	PERSYST 4–128Mb xSPI gaining design activity, esp. in EU/APAC (Q2 PR) ; new contracts in Q3; 2025+ contribution expected	Purdue neuromorphic AI (4-year, ~$10.5M total; ~$4M year-one plan), CXL MRAM demo roadmap, 1Gb xSPI sampling target in ’25	Increasing scope and visibility
Supply chain/inventory	Slower 1H; signs of recovery into 2H (Q2)	2025 weighted to 2H; Asia inventory digestion and seasonality drive weaker 1H guide	Improving into 2H’25
Product performance	Expect ramp in H2; design wins to convert in 2025+	IBM FCM4 STT-MRAM shipments continued; Lucid Gravity prototypes recognized; Lattice Radiant validation	Positive execution
Regional trends	Highest design activity in EU/APAC (Q2)	APAC (network/casino), EMEA (aerospace/industrial/auto), Americas (aerospace/oil&gas/FPGA) wins highlighted	Broadening across geographies
DoD/RAD-Hard	$9.25M Frontgrade contract announced Aug’24; $14.55M sustainment award announced Aug’24 (pre-Q3)	$2.1M recognized in Q4 from sustainment award; multiple RAD-Hard programs on track	Building, milestone-driven
Reporting metrics	Adj. EBITDA used (Q2/Q3)	Shifting to non-GAAP EPS in 2025	Standardizing to EPS

Management Commentary

“We are pleased to report fourth quarter results with revenue above our expectations and earnings per share at the high end of our guidance range.” – Sanjeev Aggarwal, CEO .
“Our solid results this quarter were driven by strength in our product revenue and RAD-Hard projects.” – Bill Cooper, CFO .
On IBM/data center: “We continued to ramp revenue from the sale of a PERSYST 1 gigabit STT-MRAM into IBM’s FlashCore Module 4” .
Automotive: “Recognized initial revenue from the PERSYST MRAM prototypes we shipped to Lucid Motors for their Gravity SUV” .
2025 setup: “We expect the year to be weighted more heavily towards the second half of 2025 due partially to our typical seasonality and as our Asian customers continue to work through their inventory” .
Non-GAAP shift: “We will be shifting our non-GAAP metrics from adjusted EBITDA to non-GAAP EPS” .

Q&A Highlights

Other income cadence: Q1 “other income” from the $14.6M sustainment award will be “significantly lower,” more than $1M less Q/Q; milestone-based recognition skews to back half .
Lattice collaboration: No direct revenue from Lattice; integration via Radiant suite should accelerate design wins and qualifications rather than provide partner payments .
Macro/inventory: Indications of low channel/customer inventory; management expects 2H’25 to look more promising than 1H .
Purdue AI program: ~4-year effort; ~$10.5M total value to Everspin; year one ~ $4M; milestone-based revenue recognition .
Defense-market exposure: Current projects (QuickLogic FPGA, Frontgrade, Purdue) proceeding; new awards may await policy clarity; no near-term disruption indicated .

Estimates Context

S&P Global (Capital IQ) consensus for Q4 2024 EPS and revenue was unavailable at the time of this analysis due to service limits; therefore, we cannot quantify beat/miss versus Wall Street consensus for Q4 2024. We anchor comparisons to company guidance and reported results instead [GetEstimates errors].
Company delivered revenue above internal expectations and EPS at the high end of guidance; Q1 2025 guide implies a GAAP loss as “other income” recognition moderates near term .

Key Takeaways for Investors

Near-term setup is mixed: sequential product recovery and structural design-win momentum vs guided Q1 GAAP loss and lower “other income” recognition; the narrative points to a 2H’25 reacceleration as inventory normalizes .
Government/RAD-Hard programs are tangible contributors (milestone-driven), but timing can introduce quarterly volatility; sustained back-half contributions are expected .
Product traction is broadening (IBM FCM4, Lattice integration, Lucid Gravity) across multiple end-markets, enhancing medium-term visibility as design wins convert .
Gross margin expanded Q/Q on mix; sustained improvement likely requires volume recovery and continued product mix optimization .
Balance sheet strength (cash $42.1M, no debt) provides flexibility to invest through the cycle and support program execution .
Watch for: Q1 delivery vs guide, cadence of “other income” milestones, updates on 1Gb xSPI MRAM sampling and CXL demo, and incremental design-win conversion timelines .

Supporting citations: Q4’24 press release and 8-K , Q4’24 call transcript -, Q3’24 press release -, Q2’24 press release -, Lucid press release .

EVERSPIN TECHNOLOGIES INC (MRAM)·Q4 2024 Earnings Summary